Claimant v Orbinox UK Limited
Outcome
Individual claims
The parties agreed that the claimant was owed two days' accrued holiday pay as at the date of dismissal, equating to £340.00 gross. The tribunal found the claim well-founded under the Working Time Regulations 1998, Regulation 14, which provides entitlement to leave where employment is terminated during the leave year.
The claimant claimed an unpaid bonus of 10-15% of her basic salary. However, the offer letter clearly stated that any bonus would only apply after completion of the three-month probationary period and was expressly discretionary. The respondent declined to exercise its discretion to pay any bonus. The tribunal found the claimant had no contractual right to the bonus payment.
Facts
The claimant worked as Finance Manager for a valve distribution company from August to December 2023 on a part-time basis (21 hours per week) at £20 per hour. Her employment was terminated summarily on 7 December 2023, only two weeks after completing her three-month probationary period. She claimed accrued holiday pay and an unpaid discretionary bonus of 10-15% of her salary that she believed had been promised.
Decision
The tribunal awarded the claimant £340.00 in agreed accrued holiday pay under the Working Time Regulations. However, the breach of contract claim for bonus was dismissed because the offer letter made clear that bonus eligibility only commenced after the probationary period and was expressly discretionary. The respondent had lawfully declined to exercise its discretion to pay any bonus.
Practical note
Discretionary bonus schemes that expressly reserve employer discretion and specify conditions precedent (such as completion of probation) do not create enforceable contractual rights even if the conditions are subsequently met.
Award breakdown
Award equivalent: 0.6 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 6000608/2024
- Decision date
- 16 August 2024
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- manufacturing
- Represented
- No
Employment details
- Role
- Finance Manager
- Salary band
- £25,000–£30,000
- Service
- 3 months
Claimant representation
- Represented
- No